We’ve been doing our best here at BodyShop Business to bring you the latest consolidation news, as the buying and selling of collision repair facilities has been fast, furious and ever-changing. All the credit goes to Laura Gay, owner of Consolidation Coach, who has done a fabulous job creating the content you desire. Who better to do this than someone who helps collision center owners looking to sell their shops obtain the maximum returns for their businesses?
Gay’s recent article, “Auto Body Consolidation: Who Will Win the Race?” blew up our website, and we thank you for reading. Compared to early 2021, Gay said consolidation went from a leisurely drive in the country to the Daytona 500. What’s surprising, she said, is that it did not slow down at the end of 2021 like she thought it would. In fact, some shop owners are so desperate to get out, they’re willing to take hundreds of thousands of dollars less for their businesses.
“Some shop owners don’t want to work on their business to increase its value and get more,” Gay said. “They are tired and consequently want out and will take what they can get it.”
One person more unfamiliar with the situation asked (jokingly, I think) if there will be any shops left once the dust settles. Well, of course there will be. Some shops don’t want to sell and are intrigued by the industry’s challenges and compelled to keep competing and gain market share. Others are simply not attractive to consolidators to buy. Others will fill the void left by the departing shops, and Gay believes there will always be a place for the small shops that offer exceptional customer service with a hometown feel.
We will keep monitoring the consolidation environment, as it is likely to keep changing. Like Gay said, there is so much drama, it could almost make for the next great Netflix series! Stay tuned.
